Shares in Ubisoft (UBIP.PA) plunged on Thursday after the French video game publisher announced a significant reorganization and the cancellation of six games. The announcement led to a sharp 33% drop in shares, marking the company’s biggest one-day loss since its 1996 listing on the Paris stock exchange.
The drastic fall in Ubisoft’s stock value came as the company revealed plans to restructure its operations. Ubisoft, known for its iconic “Assassin’s Creed” video game series, will split into five creative divisions. These divisions will regroup titles based on game genres, aiming to streamline operations and focus on key market segments.
In addition to the reorganization, Ubisoft confirmed that it would cancel six games, including the highly anticipated “Prince of Persia” remake. The company also revised its net bookings forecast for 2026, narrowing the outlook, and withdrew earlier guidance for fiscal year 2026/27. This combination of restructuring and cancellations raised concerns among investors about the company’s ability to return to profitability soon.
Analysts are skeptical about Ubisoft’s financial outlook. Corentin Marty, an analyst at brokerage firm TP ICAP Midcap, said the prospect of returning to positive cash generation seemed distant. He warned that Ubisoft’s financial structure could weaken further in the near term.
Shares were trading at 4.6 euros in early Thursday trading, giving Ubisoft a market value of 616 million euros ($720 million). This drop represents a significant decline from its peak market capitalization of 11 billion euros in 2018. Last year, Ubisoft’s shares nearly halved in value, falling below 1 billion euros in market capitalization, according to LSEG data.
READ: Oil Prices Fall as Trump Softens Greenland and Iran Threats
